Techstars’ Toxic Layoffs: The Real Reason Behind the Bloodbath
In a shocking move, Techstars has brutally slashed 17% of its workforce, leaving many employees wondering if they’ll still have a job come Monday morning. But what’s behind this brutal culling of the herd? Sources close to the company reveal that it’s not just a matter of "right-sizing" – it’s a desperate attempt to salvage a sinking ship.
The truth is, Techstars’ partnership with J.P. Morgan, which was supposed to be a golden ticket to success, has been a disaster from the start. The bank’s lack of commitment to the AdvancingCities program, which was supposed to be a game-changer for diverse founders, has left the company with a huge financial hole to fill.
And yet, instead of taking responsibility for the mess, Techstars is blaming its own employees. CEO David Cohen’s email to staff claims that the company "overbuilt and overhired," implying that the problem lies with the workers themselves. But insiders say that’s just a smokescreen for the real issue: a toxic culture of overpromising and underdelivering.
The news comes on the heels of a tumultuous year for Techstars, marked by a series of high-profile layoffs and a leadership shakeup that saw the departure of CEO Maëlle Gavet. But this latest round of bloodletting is just the tip of the iceberg. Sources close to the company say that morale is at an all-time low, and many employees are wondering if they’ll be next on the chopping block.
So, what’s next for Techstars? Will the company be able to recover from this brutal blow, or will it be forced to sell off its assets to pay off its debts? One thing is certain: the startup accelerator’s reputation is in tatters, and it’s going to take a lot more than a few hollow words of encouragement from CEO David Cohen to restore it.
